Negotiable instruments are documents that guarantee payment of a specific amount of money. In some examples, a negotiable instrument can be described as a contract that promises payment of money without condition, which may be paid either on demand or at a future date. In general, an instrument is a negotiable instrument if it is a written instrument signed by an endorser (or maker), includes an unconditional promise to pay a certain amount of money, either on demand or at a future date, and is payable to the holder (or bearer). A person who becomes a holder in due course of a negotiable instrument by delivery, or by delivery and endorsement, has an unrestricted claim to the negotiable instrument. Example negotiable instruments include promissory notes, bills of exchange, banknotes, and checks.
Fraud can be perpetrated based on negotiable instruments. For example, and with reference to checks, a fraudster can present a check for payment at multiple financial institutions. For example, the fraudster can electronically deposit a check with a first financial institution (e.g., mobile deposit of the check using a banking application executing on a smartphone), and can physically deposit the same check at a second financial institution (e.g., visit a branch and deposit the check with a teller). It can be weeks or months before the multiple deposits of the same check are discovered.